NYSE
BRO
Last Price
US $63.65
KEY FIGURES
MKT CAP
$21.3B
EPS
TTM$3.62
EPS Growth (1Y)
-8.67%
PEG
TTM1.32x
P/E
TTM17.59x
P/S
TTM3.09x
YIELD
1.0%
Profit margin
Current Ratio
Capital Returns
9.62%
Return on equity
ROIC: 6.79%
Valuation History
17.4X
Price to Earnings
EV/EBITDA: 11.6X
Cash flow
Profit margin
GROWTH (5Y CAGR)
Revenue
17.20%
EBITDA
19.37%
Cash flow
16.56%
Base Cash Flow Valuation (DCF)
Fair Value
Market $63.65
28.55%
Default assumptions
Base EBITDA Valuation
Fair Value
Market $63.65
-64.68%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Cash flow to debt coverage
Brown & Brown, Inc. cash flow to debt ratio of 18.31% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Free cash flow growth
Brown & Brown, Inc.'s free cash flow has increased 26.56% from $1.09B last year to $1.38B, signaling increasing performance
Debt-to-equity ratio
Brown & Brown, Inc.'s debt to equity ratio is 0.64, which means that the company's assets are unhealthy financed, signaling financial risk.
Debt-to-equity trend
Brown & Brown, Inc.'s debt has increased relative to shareholder equity from 0.63 last year to 0.64 today, signaling weakened financials
Net debt to EBITDA
Brown & Brown, Inc. has a net debt to EBITDA ratio of 3.45x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Interest coverage
Brown & Brown, Inc.'s interest coverage ratio of 6.50 indicates that earnings with good margin can cover interest payments on company debt
Profit margin growth
Brown & Brown, Inc.'s profit margin was 21.11% last year and is 17.59% this year, signaling decreasing performance
Current ratio
Brown & Brown, Inc.'s short-term assets of $8.61B exceed its short-term liabilities of $8.29B
Return on assets
Brown & Brown, Inc.'s return on assets of 4.03% is lower than the 5.00% threshold, indicating inefficient asset utilization
Return on equity
Brown & Brown, Inc.'s return on equity of 9.62%, is lower than 15.00%, indicating bad performance
Earnings quality
Brown & Brown, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Earnings stability
Brown & Brown, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings
Positive free cash flow
Brown & Brown, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Free cash flow yield
Brown & Brown, Inc. has a free cash flow yield of 6.49%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Earnings growth
Brown & Brown, Inc.'s yearly earnings has increased 6.14% since last year from $993.00M to $1.05B, signaling increasing performance
Revenue growth
Brown & Brown, Inc.'s yearly revenue has increased 26.59% since last year from $4.71B to $5.96B, signaling increasing performance
Return on invested capital
ROIC 6.79% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
3-year revenue CAGR
Brown & Brown, Inc.'s 3-year revenue CAGR of 17.38% is positive, indicating growing revenue over the past 3 years
Revenue consistency
Brown & Brown, Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance
Return on equity consistency
Brown & Brown, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity
Base Cash Flow Valuation (DCF)
Brown & Brown, Inc. is undervalued relative to its fair value price of 81.82 based on Base Cash Flow Valuation (DCF) model
Earnings yield (TTM)
Brown & Brown, Inc. has an earnings yield of 5.69%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Base EBITDA Valuation
Brown & Brown, Inc. is overvalued relative to its fair value price of 22.48 based on Base EBITDA Valuation model
EV/EBITDA (FY)
Brown & Brown, Inc. has an EV/EBITDA ratio of 14.20x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
PEG ratio (TTM/FY)
Brown & Brown, Inc. has a PEG-ratio over 1 which is considered overvalued
Price-to-book ratio (FY)
Brown & Brown, Inc. has a price-to-book ratio of 1.68x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Price-to-sales ratio (TTM)
Brown & Brown, Inc. has a price-to-sales ratio of 3.09x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue